Lotto Operations in Limbo After Court Blocks Licence Extension

South Africa’s Lotto operations face an uncertain future following a decisive ruling by the Pretoria High Court, which has dismissed the National Lotteries Commission’s (NLC) bid to extend the temporary licence of the current operator. With just days to go before the current licence expires, the country’s national lottery may be forced into an indefinite pause, potentially halting ticket sales, payouts, and critical social grants funded through lottery revenue.

Court Ruling Leaves Lotto Future Uncertain

The court’s decision, handed down on 21 May 2025, struck down the NLC’s attempt to extend a temporary one-year Lotto licence to Ithuba Holdings, whose existing licence officially expires on 31 May. Ithuba has been managing the Lotto since 2015 and was expected to hand over operations to a newly appointed operator in the coming months.

However, the court ruled that a temporary licence may only be granted for a maximum of five months—citing prior legal precedent and a need to avoid giving preferential treatment to Ithuba. The judgment emphasized the importance of maintaining fair, competitive practices in the selection of Lotto operators.

The implications are significant: unless a new operator is able to take over immediately, Lotto operations across the country may grind to a halt starting 1 June 2025.

Earlier this week, Sizekhaya Holdings was officially named the next national lottery operator by the NLC. However, the transition timeline remains unclear. With only days left before the current licence expires, stakeholders are concerned that Sizekhaya will not have enough time to fully assume operational responsibilities.

Meanwhile, Ithuba has reportedly refused to sign a five-month temporary agreement, citing the financial impracticality of maintaining operations on such a short-term basis. According to sources within the company, the limited timeframe does not allow for the cost recovery needed to continue running the Lotto efficiently.

The National Lotteries Commission, in a public statement, confirmed that Ithuba’s refusal could lead to an interruption in Lotto services starting next month.

The uMkhonto weSizwe (MK) Party welcomed the court’s ruling, calling it a necessary step toward dismantling what it referred to as entrenched political favoritism and institutional manipulation within the National Lotteries Commission.

“From the 1st of June 2025, no lottery operations will exist,” said Sipho Tyira, the MK Party’s national spokesperson. “Machines will be off, revenue will be lost, and grants will be halted. This is the price of political patronage, institutional capture, and governance by secrecy. The Lotto belongs to the people, not to favoured companies or irregularly constituted boards.”

Public opinion has been divided. Some applaud the court for reinforcing principles of fairness and transparency, while others express deep concern over the potential social and economic fallout. The Lotto funds numerous social initiatives across South Africa, including education, healthcare, and community development grants. A suspension of these services could disrupt support for millions of South Africans who rely on them.

The possibility of a complete Lotto shutdown raises several urgent questions. For one, lottery ticket sales would be suspended nationwide, halting the generation of revenue that funds vital public welfare programs. Retailers and Lotto vendors across the country would also suffer a sudden loss of income. More critically, beneficiaries of Lotto-funded grants may face delays or cancellations in much-needed support.

Legal experts caution that if Sizekhaya Holdings is not ready to take over by 1 June, the absence of an interim operator could trigger significant logistical, financial, and legal challenges. While the NLC scrambles to manage the fallout, there is increasing pressure on all parties involved to find a workable short-term solution that keeps the Lotto running.

This crisis has put the NLC under intense scrutiny. Critics argue that the commission’s lack of transparency, poor planning, and apparent preference for Ithuba Holdings have led to a governance failure. Others point out that the rushed and secretive nature of the operator transition process has undermined public confidence in the integrity of the Lotto system.

As of now, there is no confirmed plan to keep Lotto operations running smoothly after Ithuba’s licence expires. Whether a last-minute agreement can be reached or Sizekhaya can step in quickly remains uncertain.

What is clear, however, is that the future of the Lotto in South Africa hangs in the balance—and with it, the trust of a nation.

Source- EWN